Posted on: September 25, 2020
WI 523 | Wholesaling

 

Let’s set one very common misconception people have about wholesaling straight: that it’s all about real estate and closing deals. Wrong! The truth of the matter is, wholesaling has NOTHING to do with real estate. At its core, it is all about SERVING others.

In this episode, no less than our own Cody Hofhine shared the wholesaling mindset that has helped him generate millions of dollars in revenue. He also shared what you can do to stand out when you are competing with others for a specific deal.

The secrets Cody shared in this episode can mean the difference between staying stuck and getting ahead of the pack, so please don’t miss it!

Why Wholesaling Has NOTHING To Do With Real Estate . . . And 2 Ways To Profit In Almost Any Situation

Episode Transcription

Wholesaling has nothing to do with real estate. Many times, we are thinking about the deal. I’m here to tell you that if you are worried and focused about the deal, this will forever be a struggling job. Those that have turned this into an actual business that serves them versus you always have to serve it or always struggling and finding that next deal, those that can turn that around and make it serve them have found out this one big secret. It’s all about rapport. It’s all about building those relationships with trust. I’m going to share two stories of how you can do that that I have done in real-time with people.

About 2016, I was out in Memphis, Tennessee. I was out there doing our first Tribe event. There weren’t many people there. There are about 30 of us. We are in this real estate agency and we are on the top floor. It was so hot. We were all sweating. The AC didn’t work great. It was awful but it was super fun because we’ve got to sit there and talk shop and wholesaling. One of the new students of the Tribe had come up and he was like, “During our break, I’ve got this phone call. It sounds like a good phone call but I don’t dare to get on the phone. I don’t know what to do with this.” I said, “Don’t worry about it. Let’s have some fun. Let’s do this.”

The first tip I’m going to share with you is to have fun with your leads. It’s all about bringing some humor and laughter. That humor and laughter change the chemistry in the body. I want you to remember this. I’m going to share a story on how you can do stuff like this. There are 30 of us in a room and I said, “You are going to have to be completely silent because I’m going to take a call now, live, on speaker, and I’m going to show you exactly what you need to do so that you can go out and get deals.” Everyone was like, “Okay.” I said, “I’m serious. You’ve got to be quiet. I’m going to say things that will possibly make them laugh. You guys can’t laugh. You’ve got to stay quiet the whole time.”

By the way, the lady’s name was Eunice. She was from Oklahoma. I picked up the phone, started dialing, and Eunice answered. I said, “Eunice, I had got your voicemail a second ago. I wanted to reach out to you because it sounds like there might be a way I can help you out.” Eunice started talking like, “Yes. It’s frustrating. I own this rental and things are going bad. It’s a condo and the person hasn’t paid rent in six months. I know they are trashing it. I told them they couldn’t have pets and I have seen 2 or 3 dogs now in there. They don’t answer the phone. I don’t know what to do. I don’t know what the eviction process looks like. How can I get your help?”

I said, “Eunice, are you calling me to buy your home or are you calling about my other service where I’m a head hunter and I will take out people?” She starts laughing her head off. She’s like, “That’s the one. Let’s do the head hunter business.” I’m like, “Eunice. I’m kidding. What do you want me to do?” We are both laughing now and engaging. Humor and laughter is an easy way to start connecting with your leads.

WI 523 | Wholesaling

Wholesaling: Humor or laughter is an easy way to start connecting with your leads.

 

Use humor, use laughter. Smile on the phone. They can see your smile. People are like, “If I’m smiling over here, they won’t see it.” I can tell every single time when someone is smiling. Bring humor, laughter, a smile to each one of your calls. This ended up being where I said, “What do you want me to do? How can I be of best service?” It ended up setting up a big old conversation about what she was looking to accomplish.

I ended up by saying, “Eunice, here’s the thing. I’m going to have Justin come visit you in the next couple of days and look at this condo. We will do our absolute best to try and help you out, whether that means we buy it or not, we are going to come out there. Hopefully, we can be a fit and I will buy it. If not, we are still going to sit there and find a way to help you so that you don’t get left behind. We will find out who is the best fit if we are not the best fit.”

She was grateful. She’s like, “I don’t even want anyone else to come out to the home then. Either you are going to be buying it or still going to be sitting there with me and helping me to understand who should buy the home.” That’s the thing. You can kill the competition by serving people. “Eunice, I’m either going to buy the home or I’m going to sit there and figure out what is your best option.” That was enough for her to say, “I’m going to wait for you guys to come out and see what you can do.”

Justin ended up getting that home under contract for $15,000, turned around, and whole sold it for $30,000. That is a win. It was a win for Eunice as well because she was able to get rid of that huge problem that was in her life. That’s one way of building rapport, making sure you add humor, laughter, and you are smiling. The next one is an individual that’s right here in my market. It’s one of our leads. He came in and I took the phone call. This was at the early stages before I had a team in place.

I started talking to this lady and she’s like, “I’ve got ten postcards here of people wanting to buy my house. I do want to sell quickly.” I said, “What does that look like? If it’s something that I can come out with and if we can put together a win solution for you and me, is that something we could move forward on now?” She says, “I have already picked five of those postcards out and you are one of them. Two of them have been to my house. I still have two more but I want all five of you because I want to find out what is going to be the best offer.” I said, “That’s fair enough.”

You can kill the competition by just serving people.

We started talking some more. I already know that she wants five quotes but I’m going to verify that if I came out there and found a win solution, could I come out there and do it again? We started talking a little bit more and about why she was selling. What does the home look like? Has it been fixed up? Are there any repairs needed? I said, “If I come out there now and we can put together a price that makes sense, is this something you would be willing to move forward?” She says, “No, because only two have come. Two more are going to come, and then there’s you. I do want all five.” I said, “Fair enough.”

I asked that question twice. Now I know that I don’t want to be 1, 2, 3 or 4. I want to be the fifth person out there. I said, “When are the other two coming out?” She says, “They are coming out now. The last one is at 4:00. They will be here until about 4:30.” I said, “What if I come about 5:00 PM tonight, and we will get this all out of your way, so it’s all done in one day?” She says, “Awesome, that would be perfect.” I go out at 5:00. I’m the fifth one and she’s already answered. I also said, “If these guys come out and present something to you and you are not accepting their offers, are you going to wait for me to come out?” She says, “Yes, I need to hear all five.” I said, “Perfect. I will be out there at 5:00.”

Here’s the mindset. If you are worried about the deal, all you have to offer is the price. That’s it. Don’t worry about the deal. Worry about solving the individual’s problems. Be a solution to these individuals, and you will find out that they will want to do business with you over all the competition that went out there earlier. My whole focus was how I can connect with this individual? I don’t want to sit there and bid up. How do I connect with this person so that they want to do business with me?

I went in there, we started talking, and she’s like, “Where do you want to start? What home do you want to look at? What part of the home do you want to look at now?” I said, “Tell me a little bit about your story. What is it that you are trying to accomplish with this?” I started to get to know her. She was sharing that her husband had passed away. Her kids are out of state, and she wants to move out of state so she can be by her kids and be closer.

She shared that this home was the home of their dreams when they first bought it and used the backyard for amazing gatherings. I said, “Let’s look at the backyard.” There was a walkout basement. We were overlooking the backyard and I sat there. I said, “This would be a perfect place for backyard gatherings. This is beautiful.” She’s like, “See down there in the circle down below? We would also play baseball down there as a family. We would play whiffle ball.” I was like, “It’s amazing. Do you guys have a barbecue? Would you do barbecue?” She’s like, “Yes, in fact, that’s under the deck. You can’t see it but there’s a barbecue down there.”

WI 523 | Wholesaling

Wholesaling: It’s not about the home. It’s about the individual.

 

All I did was I didn’t even focus on the home. I didn’t care about how many bedrooms, bathrooms, when was the last remodel, and what needed to be fixed. I asked nothing about the home. All I cared about was the homeowner and that’s it. We started talking a little more and I said, “What are you hoping to accomplish? Are you looking to look for a condo? Where are you going to move to?” “I’m moving to Arizona.” I said, “Awesome. You better find something with a nice AC unit because it gets super hot during the summer.”

Notice that I never once talked about the home yet. All I have talked about is her, helping and connecting with her. That’s all I did. As we went and talked and talked, it got to about an hour and fifteen minutes, and she said, “Do you like the home? Is it even something you want to see?” I said, “I want to find out how I can best serve you. At the end of the day, my gut tells me that all five of us are probably around the same price. I didn’t want to do this bidding war. Since we are all probably the same price, I wanted to find the best way to serve you so that I can help you the most so that you can accomplish what it is you want to accomplish.”

From that conversation, she says, “The highest bid was $240,000. If you bid $240,000, I would move forward with you.” I asked her, “What would have you move forward with me versus the other people?” She says, “The one individual came out and told me, ‘You have to sign on the spot or I walk in five seconds.’ I said, ‘Okay, walk.’” The first one was gone. The other three, all they cared about was the deal, the home, how many beds and baths, how much to fix it up. She says, “You are the first, 1 of 5, that cared and asked questions and got to know me.”

It’s because of that, she chose to do business with me and told me the exact price that I needed to be at to get that agreement put together. If you can find ways to connect with individuals through humor, laughter, smiling, getting to know them, and not about the home because it’s not about the home, it’s about the individual. If you can do your deals this way each and every time and keep it in front of the sight and mind to not worry about the home but worry about the homeowner, you will do more business. You will take business from all the other so-called competition, wholesalers or investors because you simply do business differently.

It’s all about rapport. It’s all about relationships. This show is only as good as the action you take following it. It’s not something you read and gets all of warm and fuzzy and be like, “I’ve got to get in this real estate game.” The only way to get involved to get in it is to get out of your own way and take action. If you need help building your wholesaling business, you can go over to WholesalingInc.com. You can book out a time to get on the phone with either myself or someone on my team where we can begin to have the conversation to see if we are a good fit for one another. If so, we will get you to be part of the Tribe and well on the way to doing your first deal or next deal. Until next time, keep charging forward, take massive imperfect action, and go find your next deal.

Important Links:

About Cody Hofhine

Cody Hofhine is the founder of Investor Grit and Utah Sell Now. A few years ago, he was selling insurance. He liked what he did and made a decent living doing it. One day back in 2015, he was introduced to Wholesaling Real Estate. People in his area were making a fortune doing it so he got curious and decided to jump in. He made a TON of mistakes but he was committed to making it work…and he did!

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